Study: Workers Need Education on Supplemental Life Insurance
Many uninsured individuals don't have insurance coverage because no one has invited them to purchase their products, a Deloitte survey of life insurance buyers found
. Even insured individuals who are open to buying additional coverage often say that they have not been solicited by carriers.
"From our survey it is clear that life insurance is very much on the minds of
many consumers," said Rebecca C. Amoroso, vice chairman and U.S. insurance leader for Deloitte LLP. "A significant percentage of respondents have simply not been offered coverage recently; many also noted that they never shop for coverage on their own initiative.”
The survey, "The Voice of the Life Insurance Consumer
," covered insurance buyers and non-buyers' related beliefs, motivations, influences, priorities and preferences. It was targeted at insurance carriers but it also provides useful insights for HR professionals as they develop their benefits communications strategies.
Among the key findings from the survey:
- 33 percent of respondents said they did not have coverage because no one had offered to sell them a policy.
- 45 percent of non-buyer respondents and 70 percent among those who have life insurance included it among their top five financial priorities.
- A significant number of the insured and uninsured intend to buy new or additional insurance in the next two years.
- Older prospects are harder to persuade with solicitations than younger consumers. The youngest respondents found the application and underwriting process to be much more onerous than older consumers did.
- Financial triggers and familiar life events play a significant role in the decision to purchase life insurance purchase. But many people don't fully understand the broader roles and benefits of permanent life insurance in the context of more comprehensive, longer-term financial planning solution.
- Among the non-buyers, 37 percent of those who had life insurance in the past said the workplace was a big source of sales with 43 percent automatically securing a policy through their employer and 20 percent buying additional benefits through their group plan.
“Life insurers could work more closely with employers to promote automatic and voluntary life benefit options since many of those surveyed prefer to buy coverage through their places of work,” Deloitte’s Amoroso said in Insurance Networking News.
We’ve written before about the the important role that benefits professionals can play in helping their workers understand the value of voluntary benefits, especially supplemental life insurance.
What steps are you taking to improve your voluntary benefits communication strategy?
Winston Benefits is a HR solutions company that helps businesses automate and streamline their employee benefit programs. Custom designed and developed client specific solutions help enrich their total compensation and rewards programs while optimizing processes such as benefit communications, enrollment and administration.